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The “entire GST regime” should start working smoothly in the next three to four quarters, said Sanjiv Bajaj, Managing Director, Bajaj Finserv.
According to him, the GST committee is meeting regularly to ensure a smooth transition.
Moreover, a legislation like GST – which is being rolled out on a massive scale – is bound to go through “periods of correction”.
“You have to keep in mind that this is the single-biggest legislation that has been rolled out anywhere in the world. It is bound to go through periods of correction [or] change before it settles down,” he told BusinessLine on the sidelines of a financial conclave organised by the Bengal Chamber of Commerce and Industry.
According to Bajaj, GST has the potential to provide a “significant boost” to the economy.
“Once it [GST] settles down, this itself will cause a significant boost to the economy,” he added.
Bajaj Finserv, he says, has seen a slower growth (compared to earlier years) in select segments across its consumer financing business (Bajaj Finance Ltd).
The company finances one out of every three TVs bought on EMIs and is the largest financier of mobile phones.
“We are also seeing that consumers are moving to particular product categories such as mobile phones,” said Bajaj.
The consumer segment has seen a 30-35 per cent growth. As a strategy, Bajaj Finance will dial down on segments with higher risk. Being present in multiple consumer segments and multiple product lines is a part of its de-risking plan.
Growth in SME segment continues to be sluggish, and the company has accordingly tightened its credit policies there.
“We will lend to companies [SMEs] within annual revenues of ₹10 crore to ₹100 crore,” he said.
Listing According to him, Bajaj Finserv does not have any immediate plans to list either of its two insurance companies – Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance.
German insurance major Allianz holds a 26 per cent stake in each of the two companies.
“There is no reason for an IPO in the short-term,” he said, adding that the life and non-life insurance companies are well capitalised with their promoters remaining committed.
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